Inditex, the Spain-based retail giant, is one of the world’s biggest buyers of ready-made garments—and Bangladesh is one of its key sourcing countries. Their products, manufactured across different regions, are sold through 5,500 stores spread across 97 countries, including places like Uzbekistan. This year, Inditex is all set to launch its 98th store—in Iraq. But surprisingly, despite being such a major supplier of apparel to Inditex, Bangladesh does not have a single Inditex outlet.

According to officials from Inditex and local garment industry insiders, the company is indeed interested in opening stores in Bangladesh. In fact, they discussed this during their visit to the country on April 6. However, there is one major roadblock—high import duties on raw materials like yarn and fabric.

On April 6, an Inditex delegation visited the BGMEA, the country’s top garment exporters’ association. The team was led by Inditex CEO Óscar García Maceiras and included Chief Sustainability Officer Francisco Javier Losada Montero, Head of Press and Communication Raúl Estradera Vázquez, Head of Public Affairs Santiago Martínez-Lage Sobredo, Country Head Javier Carlos Santoja, and Head of Community Investment Carlos Piñeiro Aneiros.

Sources said the discussion mostly revolved around the development of Bangladesh’s apparel sector. They talked about collaboration opportunities, business expansion, and strategies to boost competitiveness in the global market. Inditex’s CEO reaffirmed the company’s long-term partnership with Bangladesh and expressed commitment to expanding their operations here.

Asif Ashraf, former director of BGMEA and Managing Director & CEO of Urmi Garments Ltd, also attended the meeting. When asked by Bonik Barta, he said, “We discussed the idea of opening Inditex stores here. It’s definitely on their radar. But the tariff is just too high. Tariff needs to be rationalized.”

Industry experts explained that Bangladesh’s export-oriented factories get duty-free access to import raw materials under a bonded warehouse system. However, clothes made from those materials cannot be sold in the local market. And if companies want to import raw materials for selling products within Bangladesh, they face steep duties. That is cited as the main reason why Inditex and other global brands do not set up stores here.

According to sources from the National Board of Revenue (NBR), manufacturers importing raw materials for domestic sales outside the bonded system are subject to very high duties. For example, importing cotton or synthetic fabric includes at least 25 percent customs duty, plus additional taxes and advance income tax, bringing the total to somewhere between 80 and 100 percent. That makes the cost of locally sold garments significantly higher—becoming a major barrier for brands like Inditex trying to enter the Bangladeshi retail market.

A Bangladeshi garment entrepreneur, requesting anonymity, told Bonik Barta that he had directly asked Inditex why the company has not opened a store in Bangladesh yet. According to him, Inditex’s answer was clear—the high import duties on raw materials are holding them back.

“They said they study the feasibility of opening stores in different countries. But because of the tariff barriers, they haven’t been able to move forward with that plan in Bangladesh,” he said. “A country with 180 million people isn’t exactly a small market. Even Uzbekistan, with a population just over 35 million, has Inditex stores.”

According to Inditex’s official website, the company recorded €38.6 billion in net sales in 2024. Under the Inditex umbrella, there are seven global brands including Zara, Zara Home, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, and Oysho. These brands source their apparel from over 8,000 factories around the world—including many based in Bangladesh.

The company saw a 5.9 percent increase in global sales in 2024. At the same time, their store space expanded by 5.8 percent worldwide. Last year alone, they opened stores in 47 new markets, including Uzbekistan. That brought their total number of outlets to 5,563 by the end of 2024. Inditex also runs a vast online retail network, covering 215 markets in total when combined with physical stores.

A trusted source at Inditex’s Bangladesh office said the company works with at least 300 garment factories in the country. Just two years ago, it sourced $1.8 billion worth of garments from Bangladesh. The local office currently employs over a hundred people. Based on production capacity and the growing local market, the company has long been interested in launching retail operations in Bangladesh.

The four-day Bangladesh Investment Summit concluded yesterday (April 10) in Dhaka. Inditex CEO Óscar García Maceiras spoke at the opening session on April 9. In his remarks, he touched on the possibility of opening stores in Bangladesh—if certain conditions are met.

He said during the summit that they currently have a physical presence in 97 countries, with plans to launch a 98th. If the right conditions are in place, Bangladesh could be next.

García emphasized that innovation and flexibility have been the keys to Inditex’s success over the past 50 years. These values, he said, also align well with Bangladesh. He also reassured that they have strong partners in the country who play a vital role in producing the products customers love. Inditex is here to stay in Bangladesh and there are plans to deepen the relationships with the local partners even further.